COMPREHENSIVE HOSPITALITY SOLUTIONS, LLC
Labor Cost is a constant struggle for owners and managers in the hospitality industry, and this is especially true for the fast-paced NYC market. However, there are ways to reduce the headaches associated with this factor. As you know, this is a volatile business. It’s difficult to efficiently predict labor needs from day to day. Here are a few good ideas to help minimize your labor cost.
The first and most effective labor cost tool is budget and forecasting. Many owners and managers don’t have a plan. A pilot would never fly a plane from New York to Los Angeles without a flight plan or some type of navigation. Budgeting and Forecasting is the blueprint in controlling labor cost.
Many managers tend to over-staff at the wrong times. It is often tempting to schedule more personnel than necessary to ensure that the business is running efficiently. However, by doing so, your labor cost will increase and your profits will decrease. Staff is the most important asset to the business and it is often difficult to cut them early as they depend on the income. One technique that would help reduce your labor cost, and at the same time keep your staff happy, would be to stagger shifts. Schedule one or two employees to open and then have a few more come in 2 hours later. This will allow you to maintain the labor cost and keep the staff happy.
- Train your prep cook to handle the grill
- Train your host to work as a server
- Train busier to work as a runner
As one of the leading outsourced restaurant bookkeeping services in NYC, Back Office Solutions can achieve the right balance of labor cost in conjunction with sales. We have been helping our customers maintain service, employees, and operating expenses with our combination of highly refined techniques and industry experience. We help our clients grow their brands and reach their full business potential. For more information about our New York restaurant bookkeeping services, feel free to contact us.